The end result is that there is little planning and a great tendency to simply consume all that comes in. They simply rely on the fact that they bring in enough money each month that whatever they spend will probably be covered. UAW’s on the other hand most typically had no idea what they spent on basic categories like that. When asked how much money they spent on things like food or clothing most PAW’s could quickly and accurately state what they spent.
Even though they have plenty of money coming in they have a careful plan as to how that money will be used. PAW’s actually – are you ready for this… They live on a budget. Not only do PAW’s tend to live more frugal life styles than their UAW counterparts, but I think more importantly they pay attention to where their money goes. Doctors, lawyers and executives with large six figure incomes may feel that they need to drive the expensive sports car or hang out at the country club in order to convey what they feel is the appropriate image for someone in their profession. Millionaires aren’t always from the professions you might expectĪn interesting and related note is that some occupations that we think of as being highly desirable and that come with high incomes may actually contribute to the production of UAW’s. While these people may make well in the 6 to 7 figure annual incomes, there is no money left over for the accumulation of wealth by the time they make their huge house payments, payments on all their vehicles and “toys, the country club dues, the private school tuition for their kids, etc. Many high income earners also live highly consumptive life styles. It is interesting that high incomes do not seem to have any particular relevance to the ability to accumulate wealth. In fact they might be living right next door to you and you wouldn’t even know it. They live on considerably less than they make. This is how they have become prodigious accumulators of wealth. In essence they live a comfortable but frugal life style. They are more likely to buy American made 2 or 3-year-old vehicles than fancy foreign sports cars.
Penney’s as opposed to Nieman Marcus or Saks Fifth Avenue. Their favorite stores tend to be Sears or J.C. Most have never spent more than a few hundred dollars on a suit or a watch.
The essence of the book compares the habits of those whom Stanley refers to as “PAW’s” (Prodigious Accumulators of Wealth) vs. The overwhelming majority are self-made first-generation millionaires who lead comfortable but far from extravagant lives. Most are in fact small business owners and entrepreneurs. In fact these type of people represent a very small percentage of millionaires in America.
#THE MILLIONAIRE NEXT DOOR REVIEW MOVIE#
Our culture highlights the millionaire movie stars and athletes or those who have inherited fortunes from their families and many think that these are typical of the average millionaire. One would naturally assume that in order to become a millionaire it must be a given that a person would have a high income. Thomas Stanley and his partner William Danko have spent a career studying America’s high income and high net worth individuals by studying several thousand individuals. This quote came from one of the millionaires that was interviewed for this book, and I believe it encapsulates very well the message of The Millionaire Next Door. I always get a kick out of watching things grow. But when you see what seeds turned into … ten foot high corn … you don’t want to waste them. Dad used to say seeds are a lot like dollars. My family in Nebraska understood the value of a dollar.
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